Subscribe

Forget jibes about smashed avocado or getting a good job. If you’re keen to get on the property ladder before you’re 30, such advice isn’t very helpful. If buying your first ho…

Forget jibes about smashed avocado or getting a good job. If you’re keen to get on the property ladder before you’re 30, such advice isn’t very helpful. If buying your first home in your 20s is on your to-do list, the following practical strategies will help you get there – no lectures about brunch in sight.

The price of property

Let’s face it: housing is much more expensive than it was in your parents’ generation, especially in property hot spots like Sydney and Melbourne. The good news? Housing affordability has improved a little in 2018. While we can’t predict the future of property prices, we can offer a few clever tips to help you buy your first home.

What it takes to own property: the home truths

Following three overarching strategies will help you become a property owner:

1) Be dedicated, focused, and a little optimistic

Plan for the future with a dash of optimism. Don’t focus on house prices so much that you give up before you get started.

It doesn’t matter if you’re on an entry-level salary just out of school, or in your late 20s with no savings history. It’s still possible to make changes and start saving today, but requires a shift in mindset and behaviour.

If you’re truly passionate about owning your own home, your focus and determination will see you through. Focus on what you’ll gain in the end, not what you’re sacrificing to get there.

2) Make savvy financial choices

Open a high-interest savings account and transfer a consistent amount before you pay for bills and groceries. This way, you won’t be tempted to touch your savings.

Pay off any credit card debt as quickly as possible. Not only will this help your credit ranking, it means your income isn’t being wasted on high interest rates.

Check your eligibility for the First Home Owners Grant, which is generally geared towards those building a new home.

3) Be prepared to compromise

Don’t be scared to share: getting a flatmate will cut down your rental, electricity and water costs.

Critically assess everything you buy and where you purchase from. Consider a cheaper supermarket, home brand alternatives, and a bank account with fewer fees or more rewards.

Decide what you’re willing to sacrifice. You might not be prepared to give up three coffees a week but would happily forego Netflix. Choose compromises you know you can stick to.

A Final Word

Building a new home can be surprisingly affordable. You’ll save on building and pest inspections, and won’t have unexpected repair costs after purchasing. At G.J. Gardner Homes, we can help you build a lower-cost home – before the big 3-0.

So you want to build a home in Melbourne, but you’re not sure how much it will cost? We’ve got you covered. Here, we outline the cost of building a new home in Melbourne &ndas…

So you want to build a home in Melbourne, but you’re not sure how much it will cost? We’ve got you covered. Here, we outline the cost of building a new home in Melbourne – with a few must-know tips to get your budget sorted.

Location, location, location

First off, you’ll need to buy a patch of soil. But be prepared: land in Melbourne is the second most expensive in Australia. The good news? A median-priced lot in Melbourne costs over $100,000 less than Sydney – or $359,000 compared to $467,500.

As well as budgeting for land and construction costs, you’ll need to factor in stamp duty.

Land transfer duty

Land transfer duty, also known as stamp duty, is a tax you pay when you buy property in Australia:

It’s based on the price you paid for the property or its market value, whichever is greater.

The more expensive your house is, the more tax you’ll pay. If you’re buying a property in Melbourne worth $600,000, you’ll need to pay almost $25,000. If your home is worth $800,000, you’ll be up for just over $43,000. An online calculator will help with the sums.

Buying your first home?

If you’re a first home buyer, you can access exemptions or concessions on this land tax:

If your property is worth $600,000 or less, you might be eligible for a first home buyer duty exemption. In other words, you won’t have to pay land transfer duty at all.

If your property is valued between $600,001 and $750,000, you might be able to access a concession. The cheaper the property, the bigger the reduction.

Buying off the plan?

If you’re buying off the plan, you might only need to pay tax on the land itself, not the building. This can equate to big savings in your pocket, but your eligibility depends on how much your home is worth. If it’s not your first home, your property – minus construction costs – must be $550,000 or less. If it is your first home, you get a little more leeway.

First Home Owner Grant

Separate from the concessions outlined above, you could be eligible for $10,000 back in your pocket via the First Home Owner Grant – but only if you’re buying your first home worth $750,000 or less.

Of course, to access these concessions and grants, you’ll need to meet certain criteria. Generally, your home needs to be your main residence and you’ll need to live there continuously for at least 12 months.

A Final Word

Navigating the ins and outs of building a home can be complicated. As Australia’s most trusted builder, G.J. Gardner Homes has local knowledge and expertise. If you’d like to leave all the details to us so you can focus on the fun job of choosing your home design, get in touch with your local office today.